AUSTIN – After a brief discussion of school funding needs, the Texas Senate approved legislation Tuesday to pay a gaping Medicaid IOU and fix other budget maneuvers used two years ago to get past a predicted revenue shortfall.

Lawmakers only funded part of the Medicaid program for the current two-year budget period because of the shortfall forecast by Comptroller Susan Combs in 2011.

The remainder of the Medicaid funding is needed quickly so that providers can continue to be paid and patients can get health services. That Medicaid money – more than $4.4 billion – is included in House Bill 10.

Senators also added an amendment to HB 10 to fix another budget maneuver that lawmakers used to address the shortfall. That tactic slightly pushed back a $1.75 billion Foundation School Program payment so it would fall into the next fiscal year. The Senate version of the bill puts the payment back on its regular schedule.

HB 10 totals $6.6 billion in state general revenue, including the Medicaid money, some funds for the Children's Health Insurance Program, the fix in the Foundation School Program, and some additional money needed for schools to get through the fiscal year.

The bill, which earlier passed the House, returns to that chamber for consideration of amendments.

Davis, pressing for HB10 to be used as a vehicle to restore some of that funding, asked Williams whether the cuts would have been made if lawmakers had known that revenues would exceed Combs' revenue forecast by $8.8 billion this fiscal period.

"My grandfather often told me if ifs and buts were candy and nuts we'd all have a merry Christmas," Williams responded.

Davis offered an amendment to restore $400 million of the funding, detailing how much money it would mean to school districts represented by some senators. She later pulled her amendment down during a short Senate break after Williams said the issue would more appropriately be addressed in a second supplemental funding measure.